IRA Distributions

1. Questioner: Ralph

   Question: No RMD is required for tax year 2009. Assuming all "things being equal" would a $50000 withdrawal be best taken from an IRA or a taxable account? Assume the taxable account withdrawal is from appreciated stock with 50% in LT cap gain.
   Thanks, RBS View Answer

2. Questioner: Linda

   Question: I have a 401K and I am over 70 1/2 but I also still have earnings. Do I have to take the required minimum distribution since I have not yet retired? View Answer

3. Questioner: Curt

   Question: If I withdrawl money from an IRA to pay"qualified education expenses" is there a lifetime limit to the amount I can withdrawl regarding the 10% penalty for early withdrawl? I am 52 years old. View Answer

4. Questioner: Jon

   Question: I will be 69 on June 30, 2010. I have not officially retired, yet, as of January, the economic conditions temporarily ended my two part time jobs. I have 2 IRA's and one 401K still with my former employer. Each of these amount to 13K-15K. It is necessary that I obtain income in addition to Social Security. Should I convert one of my IRA's to produce income and how should I go about that? View Answer

5. Questioner: Rafael Canelon

   Question: Due to my credit card payments rising so much , and almost being pushed into bankruptcy, i decided to cahs out an IRA to pay off a particular account. By doing so it allowed me to pay my mortgage and stay current on the rest.

   Would my situation qualify for a hardship to avoid paying 25% of the total amount? View Answer

6. Questioner: James

   Question: Can I withdraw retirement money to pay off a student loan and not be subject to the 10% penalty? View Answer

7. Questioner: DOROTHY

   Question: Can an emergency withdrawl be made to get out of forclosure View Answer

8. Questioner: loretta

   Question: I just want to thank you for helping me. After reading your last response I feel like a weight has been lifted off my shoulders. It is just that simple isn't it...take care of mom now. I have just been getting more confused but now I know what to do. I will transfer the IRA to checking making it accessible to pay for mom's care. Then I will find someone to review the information %26 they can handle it from there. You really have been great! View Answer

9. Questioner: loretta

   Question: I am in the process of transferring my mom's IRA into her checking account to help pay for her care. Mom is 87 years old with late stage Alzheimer's. I have Power of Attorney so this is not a problem. She has a monthly non-taxable income of $2,430.00. Her IRA is $9,700.00. She takes the yearly (every Oct.) RMD of $679.31. My question is, never having paid taxes on this money, will she be taxed upon full withdrawal? Keep in mind she is 87. We are in California. Thank you View Answer

10. Questioner: Ron

    Question: I understand that I can take money out of my 401 after age 55 (and before 59 1/2) if I am retired. What is the definition of retired? If I retire from my company, where I've worked for over 30 years, but then work part-time anywhere, can I still take money out of my 401 without penalty? In other words, is the definition of retirement the absence of earned income, or something else? Thank you. View Answer

11. Questioner: sallie

    Question: I know someone who inherit IRA monies because of the death of a love one.

    She is over 60, She can withdraw it or keep it in the account.

    How often is she able to withdraw from it without penalty?

    Is she able to keep up with its status (to see how well its doing with its investments)?

    Any tips will be appreciated. View Answer

12. Questioner: Jeff

    Question: I turned 70 last march. I am still employed but plan to retire in January 2011. My broker has informed me that I will have to make a min. withdrawal before the end of year. An accountant told me that I did not have to take one until April 2011. Who is right? Will I have to take one from my 40l although I am still employed and contributing. I do not want t make a withdrawal until I have to. Thanks View Answer

13. Questioner: George

    Question: I'll be 71 on 11/26 and I'm required to take the distribution by April 2011. I have three 401k's from previous employers, one IRA Account, and currently participating in the 401k where I am employed faultier.
    

    Since I don't have to take the distribution from the current 401k, as I'm fully employed and participating, can I roll over the other 3 401k's and IRA into my current 401k where I am now working, and not pay the RMD until I retire? View Answer
    
    
14. Questioner: Barbara

    Question: I turned 70 on July 27 of this year.  Do I have to take out money for 2011 or do I wait for 2012?   My husband turned 70 in June of 2010. When does/did he have to take out money?  (It is the 1/2 part of the age that confuses me). We have all ira money in cds.
    View Answer

15. Questioner: Barbara

    Question: My birthday is July 27 and not Jan.27. Does this mean I do not have to take distribution until April 2014 but should really take it before the end of 2013? View Answer

16. Questioner: Carl

    Question: I read an article that suggested taking some of your 401K (if you're eligible to) out of the company account and putting into a ROTH IRA, and I have some questions.
    
    I'm 64, work part time (with the same company for 35 years - just started working PT, but with full benefits including contributing to a 401 K)
    
    I'm eligible to take about $38K out of my 401K as a 59 1/2 withdrawal.
    
    If I do take the $38K out, I would put it in an IRA with a brokerage account to do stock trading. What would the tax consequences be? Would there be any benefit to doing this? View Answer

17. Questioner: Sally

    Question: I have a small 401k account ($15k) with my current employer. I am 55 and my employment will end this August. In September, can I withdraw the entire amount with just 1 payment and also avoid the 10% penalty? View Answer
    

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